Las Vegas Projects Strengthen Our Economy - Part 2

Projects in Las Vegas

Below is a List of some of the Major Projects happening in the Las Vegas Valley.

 Lunar Hotel - Moon World Resorts

The 5.5 million sf structure will be 735 feet tall and 650 feet wide. 

The budget is $5 billion and is expected to be completed by 2027. 

The top floor inside the moon is the 292,011 sf “lunar surface"

Expect to pay $500 a ticket to spend 90 minutes on the "surface"

4,000 hotel suites, with a 75,000 sf spa, a 130,000 sf casino, 50,000 sf of restaurants 

and bars, a 75,000 sf shopping center, a 2,500 seat theater / planetarium, 

150,000 sf of clubs and lounges, a 5,000 seat event center and a 10,000 seat arena. 

 MSG Sphere - Madison Square Garden

 This futuristic venue is rescheduled to open in late 2021

This 360 ft tall, 500 ft wide, 18,000 seat arena is estimated to cost $1.865 billion

A pedestrian bridge will connect the new venue to The Venetian and The Palazzo complex. 

The arena will feature a programmable exterior with more than 36 miles of LED lights and a 250 million pixel interior screen with a 19,000 by 13,500 resolution, making it the largest, highest-definition screen on Earth. The venue will be able to host events ranging from immersive shows and E-sports to some live professional sports events.

 

Brightline High Speed Rail

Brightline is expects to break ground on its high-speed electric train 

connecting Los Angeles to Las Vegas in early 2022.

The cost is expected to be around $5 billion

The trains are to be self-propelled, all electric multiple unit trains 

with maximum speed of 150 mph (240 km/h),

 making a 186 mile trip from Victorville to Las Vegas in about 1 hour 24 minutes.

Future plans include links from Las Vegas and Phoenix, 

and another from Las Vegas to Salt Lake City, and Denver.

All Net Resort-Arena 

The $3 billion project had been approved in Oct 2017, and is expected begin Oct 2021.  

Jackie Robinson plans to build a sports arena on the old Wet 'n Wild 24 Acre lot.

The complex would encompass a resort hotel, a retail and restaurant, 

and a multi-purpose indoor arena with a retractable roof.  

Robinson hopes to attract an NBA team to play at the arena.

The completion date is unknown.

Google Data Center in Henderson

The $1.2 billion data center will support Google cloud computing 

and other services, such as Google, YouTube and Gmail.
 The massive 1,500,000 sf Building on 64-acre near 

Warm Springs & Boulder Hwy was purchased for $19 million.

 

Union Village at Henderson Hospital 

The first integrated Health Care Village in the U.S.

300 condos priced between $300,000 and $400,000
The 170 acre site will have restaurants, a theater, wellness center, 

Starbucks, grocery store, pubs, parks and retail

 that highlight the goal of a live, work, play community experience.

Gemini Solar Project
The Gemini solar project comprises 690 MW of solar photovoltaic PV installations 

as well as a 380 MW battery energy storage facility.
on 7,100 acres approximately 53km Northeast of the Las Vegas.

 It is the biggest solar power facility in the USA
as well as one of the biggest renewable energy projects of its kind globally.

 

Majestic Las Vegas
Construction to begin on the ultra-classy sophisticated 

 $850 Million Majestic Hotel in early 2022 and finish in 2024.
The 720 suite five-star hotel will be non-gaming and non-smoking 

 and will have a medical wellness spa high-end boutique, 

six stand alone restaurants, and 270,000 sf of Corporate Sky Suites.
A home for tech, entertainment, or sports companies.

Haas Automation Manufacturing Plant

Haas has begun Construction on 279 Acre near Inspirada.
The plans include a 4.3 million-square-foot, $327 million manufacturing facility
Henderson is a more affordable place for workers to live, 

Nevada is a “better state for us as far as taxation goes"

  is expected to create 1,400 jobs.

 

 So much going on in Las Vegas.

Below is the updated list of Projects Under Construction and Planned.

Short Term Rentals - Are they Good, Bad, Profitable or Legal...?

STR - Short Term Rentals

One of the largest growing trends for Investors in Real Estate

are STR's or Vacation Rentals.

A quick disclosure, Elaine and I own a STR here in Henderson.

 

Currently, it is estimated that there are over 8,000 in Clark County.

It is impossible to know exactly because there are so many 

operating illegally on the several different hosting sites. 

This is adding to the existing Housing Shortage that is pushing up are Home Values. 

 

Investors are very Intrigued by STR's because of the potential of higher 

monthly revenue than with traditional home rentals.

A typical 4 bedroom 2 1/2 bath 2,500 sq ft might rent for $2,000 a month.

STR's can get $300 - $500 a night, adding up to near $6,000 a month.

There are a lot of extra expenses and responsibilities with the STR,

but for the Investor who doesn't mind the extra work, there is a lot of extra Income.

 

Why are STR's so popular?  Several reasons.

 Family Friendly Homes

There's a Kitchen and a Garage

No need to split-up a larger group.

Better location, closer to family, the lake or ...

For many families that might need more than one Hotel room,

a vacation home is often less expensive. 

Especially if you need to feed a bunch of kids.

 

A majority of the STR's in Clark County are operating illegally. 

Meaning they are Not registered with any township and they are not paying 

the 13% transient lodging tax.

Currently STR's are only legal in Henderson, North Las Vegas and 

in Las Vegas. Las Vegas only allows as a "shared room" meaning a home owner 

Can rent out a room in their home.

The Nevada Legislature Approved Bill AB363 in June 2021. 

This Bill requires counties with 700,000+ population to

Adopt a Transient Lodging Ordinance. Or simply put,

They have to allow STR's with certain guidelines. 

This ordinance will be in place on July 2022. 

With the passing of AB363 Clark County now has to legalize STR's. 

If you are interested in acquiring a STR as an Investment.

Please give us a call and we can discuss your options.

Click the links below for more information about STR's.

City of Henderson

North Las Vegas

Las Vegas

Market Statistics - Breaking Down the Numbers

Below are Graphs of Median Home Prices for 

Henderson, Las Vegas and Boulder City.

from July 2018 "Pre-Pandemic" up to this week.

Many thought, including myself, that prices would go down.

As we all know Home Values have Shot Up!

What is More Interesting is when you Break Down the Numbers.

The Second Graphs show the Median Price Broken into Market Segments.

Meaning the Top 25% "Top", then the 2nd 25% "Upper"

the 3rd 25% "Lower" and then the 4th 25% "Bottom"

 

What is Interesting is how much the Top Tier Homes 

went Up So Much More compared to the rest.

You can also see how the Top 2 Tiers have been Dropping,

while the Bottom 2 Tiers are still Trending Up.

 

In Henderson, the Median Home Price was $485,000 a year ago.

They have since risen to $568,888, for a 17% Increase in Value.

 

 

 Top was $1,400,000 a year ago and is now $2,200,000

For an Increase of 57%

Upper  was $559,300 a year ago and is now $666,700

 For an Increase of 19%

Lower was $409,460 a year ago and is now $503,770

For an Increase of 23% 

Bottom was $316,520 a year ago and is now $373,350

For an Increase of 18%

 

 In Las Vegas, the Median Home Price was $289,316 a year ago.

They have since risen to $489,000, for a 25% Increase in Value. 

 

 Top was $793,250 a year ago and is now $1,200,000

For an Increase of 51%

Upper  was $441,973 a year ago and is now $599,640

 For an Increase of 35%

Lower was $327,510 a year ago and is now $413,840

For an Increase of 26% 

Bottom was $251,450 a year ago and is now $311,280

For an Increase of 23%

 

 In Boulder City, the Median Home Price was $512,467 a year ago.

They have since risen to $678,000, for a 32% Increase in Value. 

 

 Top was $1,400,000 a year ago and is now $2,000,000

For an Increase of 42%, which has since dropped

Upper  was $726,800 a year ago and is now $858,540

 For an Increase of 19%

Lower was $513,270 a year ago and is now $484,325

For a Decrease of - 6% 

Bottom was $337,057 a year ago and is now $351,560

For an Increase of 4%

 

The Future of the Las Vegas Economy and Housing Market

Jeremy Aguero, the Leading Economic Analyst of Applied Analysis

recently spoke to a group of Realtors to give some insight on

The Future of the Las Vegas Economy and Housing Market.

Here at some quick Highlights...

Before we discuss the future we look at the past.

Prior to The Covid Outbreak, Las Vegas was a  Booming.

Employment was Up, Wages Up, Tourism Up, Conventions Up, Housing Up

You get the idea, All was Good. And then...

Friday March 13th, Las Vegas Turned Off. School Closings and Casinos Shutting Down.

 

428,000 suddenly on Unemployment ( Highest in the Nation )

Looking ahead, you can see where that number has since dropped to 125,000

 

We have all known how this has affected ourselves, friends and family.

The Government jumped in and did what they could.

An Interesting Statistic shows that 84% of Americans consider their 

Financial Health to be the Same or Better than 1 year ago. 

39% believe it's good time to spend Money on Leisure Travel.

How many destinations are there in Florida?

663 Miles of Beaches, 10 Major Theme Parks and countless Old Folk Homes.

Las Vegas beats out Hawaii and California.

 By the end of 2022, they are projecting Leisure Visitation to be 90% of 2019

Convention Numbers will take a bit longer top get back to "Normal"

Quotes, "91% of Prospective Conventioneers are "Burned Out" on Zoom Meetings"

"77% are Longing to return to Las Vegas for Trade Shows"

This Recovery and Rebuilding of Las Vegas Tourism is a Big Part of 

what is going to keep the Las Vegas Housing Market Strong.

Along with Several other factors.

On average, 130 People move to Las Vegas Every Day.

We are #3 Fastest Growing States behind Idaho and Arizona.

Almost Half of the People Moving to Las Vegas are from California.

Most come here for Jobs, but the next largest group move here to Retire.

Henderson, Paradise, Spring Valley and N Las Vegas are Top Cities in USA.

Currently there are more than $17 Billion on 59 Projects in Clark County.

Including $4.3B on Resort World, $1.6B on MSG Sphere & $1.2B Google Data Center

The Question probably should be,

"Where are all these People that are moving here going to live?"

New Home Builders have Not been able to keep up with our current growth.

Over the last 4 years, New Home Builders have only built 10,000 New Homes each year.

With Home Prices going Up as fast as they have,

People are concerned we are heading for another Housing Bubble. 

Home Owners now have Equity in their Homes.

 

Housing Prices over the past 20 years, through the Boom and the Bubble, 

have averaged a moderate 4% Rate of Growth. Sustainable...

Vegas is definitely on its way back.

If you would like to View the entire Presentation, Click HERE

Las Vegas On The Roadmap to Recover

 On March 12th, Governor Sisolak released the updated    

"Roadmap To Recovery Plan"

This Raised the Capacity for Restaurants, Gyms and Casinos

from 35% to 50%  - Starting March 15th.

Vegas is known for Gambling, Conventions, Shows, Clubs, Buffets and now Sports.

Let's take a look at how things are moving forward,

as we work to get back to the "Old Normal"
 

Casino's

As of this week, ( March 18, 2021 ) 

the Only Casinos still Not Open are;

The Fiestas

Palms 

Texas Station 

East Side Cannery

Main Street Station

Buffalo Bills 

Terrible's Casino

The Linq, RIO, and Encore are partially open.

The New Virgin Casino (aka the old Hard Rock) will be Opening March 25th.

 

Conventions

Conventions are one of the Biggest draws for Vegas,

Currently there are 64 Scheduled 

The first Trade Show Convention is, The Tobacco Plus Expo May 12 - 14

( of course they aren't afraid of Covid... )

The Largest is World of Concrete with over 1,500 Exhibitors June 8-10

Shows

As of this week there are 34 Shows Open or have scheduled a reopening.

Some of the more notable are;

Absinthe - March 17th

Terry Fator - March 18th

David Copperfield - March 21st

Carrot Top - March 22nd

Cirque Du Soleil is working on reopening "O" and Mystere,  ASAP 

Clubs

The Foundation Room is opened Thurs - Sun

Marquee, Omnia, TAO & XS are opened Friday and Saturday Only

Hakkasan in scheduled to reopen March 26th

Buffets

The Garden Buffet at South Point is the Only Opened Buffet on the Strip

It is a "Staff Served" All You Can Eat

Wicked Spoon at Cosmopolitan is scheduled to reopen March 25th

All have limited seating of 6 per table

Sporting Events

The Las Vegas Golden Knights Capacity has Risen from 15% to 20% or 3,473

On March 7th, the Speedway had 12,500 at The Penzoil 400

Dana White will Not have any UFC Events in Nevada until Full Capacity.

Currently, the Las Vegas Housing Market is Strong.

Home Values are still going Up.  The question is, 

"What will happen when the Payment Forebearance Programs End?"

That's when people will need to be back to work so they can make their Payments. 

With Hotels, Shows, Clubs and Restaurants opening up and allowing 

Larger Capacity, more people will be getting back to work and making money.

It looks like things are starting to get back to "Normal"

Time will tell...

What is Keeping the Real Estate Market Going?

At the beginning of this Pandemic, myself and many others thought 

that it would lead to Home Prices dropping in our local Real Estate Market.

The opposite has happened. Prices have Rocketed Up.

So the question is, Why?

It's hard to say exactly what has caused this, but it's likely a combination of several things.

Government Stimulus - even though many people were out of work,

most people still had money coming in from the Stimulus.

 

Mortgage Forbearance - This program has been extended through March.

Understand that with Forbearance or Deferment, you still owe that money at some point.

Low Interest Rates - Record Low Interest Rates have made Housing More Affordable

 

People leaving California - 

High Taxes and Plight in the Cities have people moving to more affordable Areas. 

Like Las Vegas

 

Low Inventory - Supply and Demand says 

Inventory is Down then Prices Go Up.

And we currently have the Lowest Inventory in Over 10 years.

 

Warning... This could all change.

Interest Rates are expected to Rise.

Builders are building more New Homes to meet the demand.

The Forbearance will eventually end.

Government Stimulus is decreasing.

And people might just stop moving out of California...

 

If you have been considering Selling,

with Prices and Demand where they are at, this is a Great Time to Sell.

Just remember that you will likely need to buy something, somewhere.